Please enable JavaScript.
Coggle requires JavaScript to display documents.
Forms of Business Organizations - Coggle Diagram
Forms of Business Organizations
Sole Proprietorship
Quick decision-making
Unlimited liability
Full control over the business
Simple structure, minimal reporting
Sole Proprietorship
Suitable for beginners and small businesses
Partnership
Shared responsibilities and resources
Risks shared among partners
Types: general (joint liability), limited (limited liability for some partners)
Requires high level of trust and coordination
Two or more participants
Limited Liability Company (LLC)
Possibility to attract multiple investors
Flexibility in business organization
Combines corporate structure with limited liability
Mandatory reporting and bookkeeping
Members are liable only up to their capital contributions
Joint-Stock Company (Corporation)
Limited liability for shareholders
Managed by board of directors and executive body
Shares can be freely bought and sold
Ability to attract large investments
Capital divided into shares
Complex structure, strict regulations and reporting requirements
Other Forms
Branches of international corporations
Startups with hybrid models
Franchising
Cooperatives
Factors Influencing Choice of Business Form
Level of liability
Need for investment
Number of participants
Tax considerations
Scale of operations
Strategic goals